Monday, October 17, 2011

Who is this "we"?

The Ernst & Young ITEM Club, which uses the Treasury’s forecasting models, warns today that the economic situation is "worse than we thought", says the Failygraph. But actually, it's you … we have known this all along. Just you lot, in the bubble – the so-called "experts" – you are the ones having difficulty coming to grips with reality.

The clue lies in the comment, "George Osborne, the Chancellor, and Tim Geithner, the US Treasury Secretary, are becoming increasingly exasperated at the lacklustre response of European leaders to the ongoing single currency crisis".
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The reason why the response is "lacklustre" is because it is being treated as a political crisis – which to the "colleagues" it is – rather than an economic issue. The integrity of the EU and the eurozone comes first. They would see the global economy wrecked before they will give up on their integrationalist dream.

And that is why the euro is going to collapse. That is why it was always going to collapse. That it is "worse that we thought" is simply a reflection of the opaqueness of the bubble in which you live.